Entrepreneurship Through Acquisition (ETA) is the path of becoming a business owner by acquiring an existing, profitable company rather than founding a startup. Buyers step into established revenue, customers, and staff, usually financed with an SBA 7(a) loan, a search fund, or self-funded capital.
Why buyers choose ETA
| Factor | Buy (ETA) | Start |
|---|---|---|
| Day-one revenue | Yes | No |
| Existing customers/staff | Yes | No |
| Bank financing | SBA up to 90% | Hard |
| Failure rate early on | Lower | Higher |
A profitable business with ~$350k SDE at 2.7× is financeable on day one, a startup with $0 revenue is not.
Why it matters when buying a business
ETA is the entire premise of buying rather than building: proven cash flow makes bank financing possible, and an SBA 7(a) loan lets you control a business worth far more than your down payment. Whether via search fund or self-funded, the skills are the same, find, value, finance, and operate.
